what you can give?
2007-01-27 09:15:31 · 11 answers · asked by name. 2 in Business & Finance ➔ Taxes ➔ United Kingdom
You can give somebody a house as a present and there will be no tax to pay on two conditions.
Firstly, you do not die within seven years. If you do then this house will be part of your estate for inheritance tax purposes.
Secondly you must not keep living in the house after giving it away. If you do then the Inland Revenue will treat the house as still belonging to you and therefore it will be in your estate for inheritance tax purposes when you die.
You can only avoid this last scenario if you continue living in the house by paying the person you gifted it to a rent. And this rent must be at market prices, ie the rent you would expect to receive if you rented it out to a stranger.
2007-01-27 11:18:23 · answer #1 · answered by pagreen1966 3 · 0⤊ 0⤋
Yes as long as you stay alive for 7 years after the giving. If you die within 7 years then the recipient will have to pay tax on the value of the house. About 40% depends on indiviual circumstances.
2007-01-29 05:39:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you own the house by yourself and it is not being used as security for a loan, then you can do with it as you wish. If it is not your Principal Private Residence then you will be subject to Capital Gains Tax even if you receive nothing for it. The current market value will be substituted.
If you die within 7 years your estate will have to pay inheritance tax on the pro-rated value of the house.
All this assumes that the gift is not to your spouse.
2007-01-27 12:04:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can give anything you like to anybody you like but that gift may be subject to tax. The UK tax office has a very simple philosophy, if it moves, tax it. The tax is generally payable by the recipient but it may be waived if the donor lives for 7 years after the gift it given. This is to prevent people avoiding inheretance tax by making death bed gifts.
2007-01-29 04:11:12 · answer #4 · answered by gerrifriend 6 · 0⤊ 0⤋
A lot depends on the circumstances. If you are giving it in a Will, make sure you have the will drawn up properly.
If you give it away during your lifetime you must survive for seven years from the date of the gift, otherwise there will be tax payable either on your estate at your demise or your beneficiary will have to pay it.
2007-01-27 09:31:58 · answer #5 · answered by MANCHESTER UK 5 · 0⤊ 0⤋
Yes you can gift the house without restrictions, but as a PET (Potentially Exempt Transfer) it may form part of your estate for the next seven years (reducing scale).
If the house was a chargeable asset for CGT, there may be tax to pay on the gain arising from the deemed sale price.
2007-01-28 08:57:03 · answer #6 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋
Yes but there can be various tax implications such as Inheritance Tax, and Capital Gains Tax.
If you are in a situation where this could involve you, take specialist legal and tax advice before you do anything. It will cost you but could save you a lot more in the long term
2007-01-27 09:34:24 · answer #7 · answered by Sonny Walkman 4 · 0⤊ 0⤋
If its yours you can give anything you like, the government might take tax and if you leave it to someone in a will then if its over £250,000 they will have to pay inheritance tax too, but feel free to give me a house :D
2007-01-27 09:25:47 · answer #8 · answered by laughinggiraffe2003 3 · 0⤊ 0⤋
Yep- there is a limit of the size of "gift" you can make to someone before the government demands its pound of flesh.
:-)
It used to be £2,500 per annum before tax but that may have gone up. To £3,000
2007-01-27 09:22:59 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You might be able to buy the house and then sell it to your recipient for a pound. Not sure how the law stands on that though.
Why U feeling generous??
2007-01-27 09:28:15 · answer #10 · answered by Bailey B 2 · 0⤊ 0⤋